In Iraq, the industrial sector is severely affected by an electricity crisis. Frequent power outages cause factories and workshops to halt operations for long hours each day. forcing them to rely on diesel-powered generators to meet their energy needs. Workers describe these outages as disruptive to production activities and devastating to profits. especially with the rising cost of alternative fuels. So, How Commercial Solar Energy is Transforming Iraqi Industry sector?

How Commercial Solar Energy is Transforming Iraqi Industry

How Does Solar Energy Help Reduce Industrial Production Costs?

Iraq’s abundant sunshine makes solar energy a cost-effective solution for companies looking to lower electricity costs. By installing a solar system, facilities can generate some of their electricity independently, reducing reliance on fuel and generators. For example, a solar power plant in Baghdad’s oil fields, with a capacity of 1.3 megawatts and 2,338 solar panels, is expected to save about $720,000 annually on fuel and maintenance compared to a conventional power station.

Reducing Dependence on Fossil Fuels and Generators

Many Iraqi factories depend on gas or diesel generators during power outages, increasing production costs and exposing them to supply fluctuations, particularly since Iraq imports a significant portion of its gas. By using clean solar energy for on-site electricity generation, companies can reduce reliance on diesel and lower emissions. The Iraqi government supports integrating renewable sources like solar into the grid to diminish fossil fuel dependence and enhance energy security. Solar energy is a promising renewable option for industrial and commercial use in Iraq.

Enhancing Production Stability Amid Power Outages

Commercial solar energy systems enhance industrial production stability by supplying consistent power during daylight hours. Daytime operations, such as farms and factories. Can run entirely on solar power, eliminating the need for expensive nighttime energy storage. This can lead to cost reductions of up to 70% compared to continuous operations. Allowing factories to maintain reliable production even during grid outages.

Improving Corporate Image and Moving Toward Sustainability

Many international investors and partners today are inclined to support companies that rely on clean energy sources. By adopting solar power, industrial companies in Iraq can position themselves as environmentally friendly and aligned with global sustainability trends. Reducing carbon emissions has also become part of Iraq’s strategy to attract investment and foster technological innovation. Therefore, using solar energy not only enhances a company’s image but can also unlock funding opportunities that prioritize sustainable projects.

Examples of Iraqi Industrial Projects Using Solar Energy

Some Iraqi companies are adopting solar energy solutions. For instance, a 1.3-megawatt solar power station in eastern Baghdad supports Midland Oil Company, reducing reliance on conventional electricity. This project uses 2,338 solar panels, preventing 2,640 tons of carbon emissions annually and saving around $720,000 in fuel costs. Additionally, the government has launched the “Shams Al-Basra” project in partnership with Total Energies. aiming for a capacity of 1,000 megawatts, highlighting the growing solar investments in Iraq.

A Look at the Future of Solar Energy in Iraq’s Industrial Sector

The Iraqi government is prioritizing solar energy to address the electricity crisis, aiming to generate 12 gigawatts by 2030. To expedite project implementation while managing financial deficits, it plans to exchange crude oil for solar energy infrastructure development

In 2023, solar energy contributed only 40 megawatts out of a total 32 gigawatts, underscoring a significant gap. With ambitious plans, solar power is set to become crucial for the commercial sector, offering factories cleaner and more affordable electricity.

Contact the AQWA POWER team today to begin a new off-grid journey!